Amaysim shares are getting beaten up after accusations of 'misleading' discounts

Mobile phone player Amaysim is in the Federal Court accused of making false or misleading marketing claims about discounts and savings.

The ACCC alleges the company’s subsidiary, Click Energy, represented to consumers in Victoria and Queensland that they could get discounts on energy charges if they paid their bills on time.

Amaysim says it has acted lawfully, ethically and in accordance with industry practice.

Shares in mobile phone and broadband player Amaysim fell hard after confirming that the consumer watchdog the ACCC (Australian Competition and Consumer Commission) has started proceedings against it in the Federal Court.

At the close, the shares were down 10.3% to $0.915.

The ACCC alleges the company’s Amaysim Energy, trading as Click Energy, made false or misleading marketing claims about discounts and savings that Victorian and Queensland customers could obtain.

Click Energy, between October 2017 and March this year, allegedly represented to consumers in Victoria and Queensland that they could get discounts of between 7% and 29% off if they paid their bills on time.